Cost Management

For an enterprise to thrive costs must be under control. There are many approaches of varying complexity available to ensure the organization’s costs are optimized. The variety of techniques allows any organization, independent of levels of complexity and sophistication to critique the cost structure and explore alternatives throughout the product lifecycle.

Cost Management - Value Transformation

Brainstorming

Brainstorming can be used for problem-solving as well as uncovering alternative approaches that may improve the cost structure for the product or process. Brainstorming is conducted multidiscipline to gather the most perspectives possible from which selection of the best possible solution will be made. We will employ many team idea generating and collecting methods as well as the use of tools such as mind mapping to build associations from which we can generate the best solution. Brainstorming does not apply solely to cost, but can also be applied to design solutions as well. We have used this technique many times to improve cost and generate intellectual property (patents).

Function Allocation Systems Technique

FAST is an acronym for functional analysis system technique. FAST allows us to reduce ambiguity in the definition of a functional product or a functional process. Value of a product is interpreted differently by different customers. Characteristics that are common to value are high level performance, capability, emotional appeal, and style relative to its cost. Value is generally expressed in terms of maximizing the function.

Value = (Performance + Capability)/Cost
Value = Function/Cost

Lean

Lean is a set of techniques that are typically employed to improve the costs in manufacturing by reducing waste, but not exclusively. In fact, this technique can be applied to process management in general, such as product development, and not just manufacturing. Cost improvement comes from managing and controlling aspects of manufacturing that have increase the cost. This includes transportation, inventory, motion, wait, over processing, over production, and defects.

Make or Buy Analysis

Make or buy analysis considers the scope and objective of the work compared to the company strategies and tactics for growth. Make refers to the company decision to internally handle the design and or fabrication of the component or subassembly. Buy refers to outsourcing the component or subassembly. There can be many compelling reasons to select one or the other of these alternatives rather than leave to random chance or little forethought.

Teardown

Teardowns are used to learn the cost implications of the design, often another manufacturer of the product. Tearing the product down is one method to identify and understand the cost drivers for the product. This includes the manufacturing, material composition and assembly of the product. The teardown will be multidiscipline approach to obtain a multitude of perspectives that will help ascertain the constituents of the product cost. This can be material, design or methods of production.

Essential Gears of Product Development: How to Build Winning Products

Introduction In today’s competitive market, understanding the gears of product development is crucial for delivering successful products. Each element—like requirements elicitation, configuration management, and risk management—acts as a gear in a well-oiled machine. When these gears work in harmony, teams can accelerate innovation, minimize risk, and maximize the value of their products.  This is not […]

Software Download Over the Air: Air: Pros, Cons,

What is Software Download Over the Air (DOTA)? Jon M Quigley Software download over the air (OTA) refers to the wireless delivery of software updates, patches, or new features directly to devices without the need for physical connections or manual intervention. This technology is widely used in smartphones, IoT devices, vehicles, and enterprise systems to […]

Configuration Management in Manufacturing Equipment and Software: It Matters

What Is Configuration Management in Manufacturing?   Configuration management (CM) is a systematic process that ensures all aspects of a product—manufacturing equipment, software, or both—remain consistent with their original specifications and intended functionality throughout their lifecycle. In manufacturing, configuration management aligns the product’s performance, functional, and physical attributes with requirements, design, and operational information from […]

A Process Is Not Necessarily Poor If Its Execution Is Errant

  My thoughts on this LinkedIn post Judging a process by its outcomes in organizations, teams, and even personal projects is common. When things go awry, the immediate instinct is often to blame the process itself. However, this overlooks a crucial distinction: a well-designed process can still yield poor results if executed improperly. Consider a […]

Engineering Excellence in Action

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Purchasing and Procurement in Project Management

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Ideal PLM and Failures

This blog post is promoted by a LinkedIn post: https://www.linkedin.com/posts/alindenthal_engineers-give-up-plm-plm-systems-have-activity-7337209561826660352-Yi2X/?utm_source=share&utm_medium=member_desktop&rcm=ACoAAAJVUn4BzjTVfTnHgKx3zQWTPI5tYcYTiCM What Is an Ideal PLM System Supposed to Do? An ideal Product Lifecycle Management (PLM) system is designed to serve as the digital backbone for managing a product’s entire lifecycle—from concept and design through manufacturing, service, and end-of-life. At its core, a PLM system should: […]

Why Engineers Give Up on PLM Systems

This blog post is promoted by a LinkedIn post: https://www.linkedin.com/posts/alindenthal_engineers-give-up-plm-plm-systems-have-activity-7337209561826660352-Yi2X/?utm_source=share&utm_medium=member_desktop&rcm=ACoAAAJVUn4BzjTVfTnHgKx3zQWTPI5tYcYTiCM Engineers Give Up on PLM Systems – Lessons from Jon M. Quigley’s Work Product Lifecycle Management (PLM) systems are intended to streamline product development, enhance traceability, and ensure quality. Yet, as Jon M. Quigley, renowned author, engineer, and project management expert, has observed throughout his […]

Aspirations – The Adam Sandler of Product Development

The Adam Sandler of Product Development I like Adam Sandler movies. My first introduction to him was the Chanukah song on a camping trip in remote British Columbia in the late 1990s. My favorite movie of his is probably The Waterboy, or maybe The Wedding Singer. I stop and watch whenever I come across either […]

Sharing Knowledge Freely

Sharing Knowledge Freely- And Knowing When to Charge By Jon M. Quigley As someone passionate about my field, I often share technical insights and advice, sometimes without expecting anything in return. My family occasionally worries that I give away too much for free.  Recently, I discussed AI and its applicability within the product development context […]

Building a Cause and Effect Diagram

Pugh Matrix

How to Brainstorm

Using Pareto Charts

Contact Value Transformation about Cost Management